Bitcoin ETFs See $103.9M Outflow Amid US-China Trade Tensions

Bitcoin ETFs experienced a significant outflow of $103.9 million on April 7, with no funds reporting inflows. This sharp decline was driven by a risk-off sentiment in the market, which was exacerbated by ongoing trade tensions between the US and China. Ark (ARKB) saw an outflow of $4.7 million, while Invesco (BTCO) shed $12.9 million. Valkyrie (HODL) and WTree (BTCW) each lost around $6 million, and Grayscale’s GBTC led with a $74 million outflow. Meanwhile, BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), Franklin (EZBC), and Grayscale’s other Bitcoin ETFs showed no changes.

In comparison, April 4 recorded $64.9 million in ETF outflows, primarily from Bitwise, Ark, and WisdomTree. Over the past week, only April 2 saw positive inflows at $218.7 million, driven by Fidelity, Bitwise, and Ark, indicating periods of stronger buying interest amid otherwise frequent net outflows. These Bitcoin ETF flows come as the crypto market contends with ongoing trade tensions. Bitcoin experienced significant volatility on Monday, triggering $1 billion in liquidations.

The entire crypto market went red after concerns about US trade relations with China. A false report on CNBC based on unconfirmed data from X that the Trump administration was planning a 90-day tariff pause caused a brief rally, pushing Bitcoin past $80,000. However, BTC quickly corrected to $77,000. The broader market saw even higher losses. Within minutes, the SPDR S&P 500 ETF Trust (SPY) shed nearly $10 and wiped out approximately $2 trillion in value from the broader index.

Spot Bitcoin ETFs weren’t immune to this volatility, and the overwhelming risk-off sentiment led to $103.9 million in outflows. If volatility continues into the week, we can expect to see even higher outflows as institutions and professional investors adjust their positions. The market's reaction to the US-China trade tensions highlights the sensitivity of Bitcoin ETFs to geopolitical risks, underscoring the need for investors to stay vigilant and adapt their strategies accordingly.